DuPont Decomposition
Why does MITCON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.4% = 4.9% × 0.39 × 2.26
Latest: FY2025
Profitability
Net Margin
4.9%
1.0% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.49x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
2.33x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 4 years. Driven by net margin improving (1.0% → 4.9%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.0% | 0.49 | 2.33 | 1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 0.34 | 2.43 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 0.41 | 2.70 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 0.39 | 2.26 | 4.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.